HomeMy WebLinkAbout0976 UNIFOR1rt CoveN~NTS. Borrc,vrer and L.~ndu covenant and agree as follows:
1. Paymeat o! Piriactpal ~ad Interest; Prepayiaent aad Late GLar~es. Borrower shall promptly pay whcn d~c
the principa! of and interest on the debt evidenced by the Note and ariy prepn~~ment asxi late charges due u~ider the Note.
I. Fuads tc~ Taza and lneuranee. Subject to applicablr law or to a writton w~iver by Lender. Borrower shall ~?ay
to Lender on thc day monthly payments are due under the Note. until the Note is paid in full, a sum ("Funcis'') equal to
o~o-twelfth of: (a) yearlp !axes and ~sments which may attun priority over this Security Instrument; (b) yeariy
leasehold paymrn:s ~r ground rents on the Property. if any; (c) yearly hazard insurar.ce premiums; and (d) yearly
mortgage insurance premiums. if u~y. "These items are csllod "~scrow items." Lrnder may estimaie the Funds due on the
basis of current d~ta and re~wnabk estimates of futun acruw items.
The Funds shall t+e held in an institution the deposits or accounts of which arc insured or guaranteed by a foderal or
state agrncy (including Lender if Len~ier is such sn institution). Lender shall app!y the Funds to pay the ~crow it~ms.
I,ender may not charge for holding and applying the Funds, analyaing thc account or verifying the ~crow ~tems. unless
• Lender pays Bonower interest on the Funds and applicable law permits Lender to make such a charge. Bonower and
Lender may agree in writing thai inttrest shall bt paid on the fiunds. Unless an agreemcnt is msde or applicable law
rcqaires interest to be paid, Lender shall not be roquired tu pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower. w~ithout chacg~. an annual accounting of the Funds shov?ving credits and debits to the Funds and the
purpase far which ea?ch dei~it to the Funds was made. The Funds an pltdged as additioruii sec;urity for the sums se~:~rec! by
this Security Irtstrument.
If the a^~ount of the Faads held by Lender, together with the future monthly payments of Funds payabfe prior to
the due dates of tho escrow items, shall eacaed the amount roquired to pay the escrow items when du~, the ezcess shall be,
at Borrower's option, either promptly repaid to Borrower or creditod to Borrower on monthly payments of Funds_ If the
amount oi'th~ Funds held by Lender is not sufficient to pay the escrow items when due. 8orrow~r shall pay to Lcnder any
amount neoessary to make up the deficiency in on~ or mare payrneats as roquirod by Lender.
Upon payment in full of all sums sccured by this Security Instrument. Lender sha11 promptiy refund to &znower
any Funds held by I.endet. If under paragraph 19 the Pmperty is sold or acquirod by Lender. Lender shall apply. no later '
than immediately prior to the sale of the Property or its acquisition by Lend~r. any Funds held by Lender at the time ot
application as a credit against the sums secured by this Security Instrument.
3. Application oi Paymeats. Untess applic~bk taw provides otherwise, all payments recrivod by I.ender under
paragraphs 1 and 2 shall be applied: first. to late charges due under the Note; second. to prepayment charges due under the
Note; ihird. to amounts payable under paragraph 2; fourth, to interest due; and last, to priRCipal due.
4. C1~arges; I.iens. Borrower shall pay all taxes. assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Socurity Instrument~ and leasehold payments or ground rents, if any. ~ ;
Borrower shall pay these obligations in the manner provided in paragraph 2~ or if not paid in that manner, Borcower shall
pay them on time direcdy to the person owed payment. Borrower shall promptly furnish to Lender al! notices of amounts
to be paid under this paragraph. If Bonower mak~s these payments directly. Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any Gen which i~as priority over this Security Instrument unless Bonower: (a)
agrees in writing to the payment of the obligation socurai by the ticn in a manner aoceptable to Lender; (b) contests in good
faith the !irn by. or deftnds against enforcrment of the lien in. legal proceedings wnicb in the Lender's opinion operate to
prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an !
agreement satisfactory to Lender subordinating the tien to this Security Instrument. If Lender determines that any part of
the Property is subjoct to a lien which may attain priority over this Security Instrument. [,ender may give Borrower a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
of the giving of notice.
S. H~urd Iasnnnce. $orrow•er shall keep the improvements now existing or hereafter erected on the Property
insured against loss by fire, hazards included within the term "eatended coverage" a:td any other hazac~s for which I.endcr i
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lende: requires. The !
insurance carrier providing the insurance shaq be chosen by Borrower subject to Lender's approva! which shall ~ot be
unreasonably withh~ld.
Al! insurance policies and renewaLs shall be acceptable to Lender and shall inclu~t a standard mortgage clause.
Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall pro~nptty give to Lender
all ioceipts of paid premiums and renewal notaces. In the event of loss. Borrower shall give prompt notice ie th~ insnrance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unfess LeT?der and Borrower otherwise agrce in writing, insuranct procoeds shall be applied to restoration or repair
of the PropeRy damagod, if the restoration or repair is economically feasible and Lender's security is not lessenod_ If the
restoration or repair is not economically feasible or Lender's security aould be lessenod, thE insurance proceeds shall be
applied to the sums secured by this Security Instrusnent, whether or not then due, with any excess paid to Borrower. If
Borrower abandons th~ Property. or does not answer within 30 days a notice from Lender that the insurance carricr has
offered to settle a claim, then Lender may colloct the insuranca procxods. Lender may ux the pracoods to repair or restore
the Property or to pay sums securod by this Socurity Instrument, whether or not then due. The 30-day period will begin '
when the notice is given.
Unless Lender and Bonower otherwise agree in writ:ng, any application of proceods to principal shall not eztcnd or
postpone the due date of the monthly paymrnts referred to in paragraphs 1 and 2 or change the amount of the paymrnts. lf
under paragraph 19 the Property is acqui~od by Lender, Borrower's righi to any insurance policies and proceeds resulting
from damage to the Property prior to the acquisition shall p~ss to I.rnder to the extent oi the sums securod by this Sxurity
Instrumrnt immediately prior to the scquisition.
b, Preser~ation and M~ietenance of Property; Ixsse6olds. Borrower shall not destroy, damage or substantial[y
change the Property, allow the Property to deteriorate or commit waste. If this Socurity lnstrument is on a leasehold,
Borrowa shall comply with the provisions of the lease, and if Bonower acquires tee title to the Property, the leasehold and
fee title shall not merge unless Lendcr agrax tu the merger in writing. ~
7. Prate~tioo of I.ender's Rig~ts eB the Property; Mortgagt Insurance. If Borrower faiis :o perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affoct
Lender's righ:s in the Property (such as a prxoeding in bankruptcy, probaie, for condemnation or to enforce laws ~r
regulatinns). then Ixnder may do and pay for whatevtr is nocessary to prote~t the value of the Prrperty and Lender's rights
in !he Property. Lxnder's ~cti~ns may incfude paying any sums secu:ed by a lien which has priority over shis Security
Instrument, sppearing in court, paying reasonable attorneys' fas and rntering on the Property to make repairs. Although
Lender may tak~ action undcr this paragraph 7. Lender docs not hsve to do so.
Any amounts disbursed by Le±~der under this paragraph 7 shall become additional debt of Borrower secured by this
Security Instrument. Unless Borrower and Lender agra to other tern+~ of paymcnt, these amo<<nts shall be3r interest from
the date of disbursemrnt at the Note rate and shall be payable, with interest. upon notice from i.ender to Borrower
requesting payment.
~o~x 511 PAGE 975
~
k